Regal Cinemas Makes Huge Customer Loyalty Strides Since 2011

Regal Entertainment Group, the parent company of Regal Cinemas, has made huge strides in most every area related to customer experience, customer engagement, and customer loyalty in recent years.

To illustrate how far the company has advanced in those areas was evidenced by the prestigious Platinum 360-Degree CX Award it received during the third annual Loyalty360 CX Awards at the 6th annual Engagement & Experience Expo presented by Loyalty360 held in December.

What’s more, Regal Entertainment Group won a Platinum Award in the Return on CX category; a Gold Award in the Customer-Centric Culture category; and a Gold Award in the Brand Messaging category.

Regal’s Crown Club loyalty program was revamped in February 2016 to offer members better rewards and unlimited credits, while also enabling rewards via the mobile app, MyRegal.com, or at the point of sale. Also, there is an online reward store featuring exclusive movie swag like T-shirts and hats, as well as aspirational rewards.

Before designing and implementing the mobile experience around its new loyalty program, Regal teamed up with WillowTree to take a user-centered approach to understanding customer needs and behaviors.

During the company’s recent fourth-quarter earnings call, Regal Entertainment Group CEO Amy Miles outline how far it has come since 2011.

Premium amenities, luxury seating, large format screens, robust concession offerings, and alcoholic beverages are available to more customers and at more Regal theaters than ever before.

Regal’s industry-leading loyalty program has almost 12 million active members; its average ticket price and concession cap growth, or per cap growth rates, are at the high end of the historical range; an attendance base of approximately of 211 million people produced adjusted EBITDA of just over $630 million; that translates to $144 million of adjusted EBITDA growth over a five-year period.

“We are very thrilled with those results,” Miles said.

Total revenue, net of variable cost, has grown by approximately $339 million since 2011 compared to an increase of less than $200 million in Regal’s operational and administrative costs.

“We highlight these accomplishments for one simple reason,” Miles added. “We believe that our strategic initiatives and operational discipline combined with our proven track record of effectively allocating capital in ways that best benefit our long-term shareholders all contributed to our success over the past five years. And we are optimistic that these positive trends will continue to benefit our customers and our shareholders well into the future.”

What’s more, Miles said Regal’s customer amenity initiatives, both at the auditorium and at the concession stand, “still have room to run and we’ll bring them to more and more customers over the next several years. Our customer engagement strategies through the Regal Crown Club, our mobile app, and our ticketing partners have the potential to increase frequency and spend among our very best customers, and all of these contribute to our expectations for continued success and should produce meaningful upside for our shareholders for the next several years.” 

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